Apple Computer - Long Term Plans

MGMT 449

Date:

September 30, 2010

To:

Apple Executives

From:

Margaret Lee

Subject:

Long Term PlansApple Computer was founded by Steve Jobs and Steve Wozniak in April 1, 1976. However, in2007, Apple Computer Inc. dropped the word in its name and became Apple Inc. This action is aremarkable milestone which indicates that Apple was no longer just a computer company. Theyhave moved into digital music, with the iPod and with iTunes, and mobile devices, with theiPhone.Apple is really involved in two businesses: the computer market and the entertainment and mediamarket. Their approach is to integrate its new products around its core industry in an effort toconstruct a digital lifestyle that encompasses not only its line of computers but its new productssuch as the iPod, iPhone and online services such as iTunes.

Key forces in the general and industry environments that affect Apple's Choice of Strategy

Apple's general external environment have some key forces to consider and understand. Theseforces are economic and global, sociocultural and demographic, and technological forces. Theseare the affects and the ability of the firm to get its product to market and sustain sales.By looking at the demographic, Apple has to understand that the younger generation are moretech savvy and welcome new changes as to the Baby-boomers maybe open to the idea but willnot pick up on the technology as fast.Sociocultural is defined to be relating the social and cultural practices, beliefs, and traditionswithin a particular society. Today, we live in a society where the consumers know exactly whatthey want and do not want. For example, when we purchase an item made from Japan; there isalready a belief that the product is high performance and will last long.With the popular growth of the technology it has made the Internet a huge new market for opportunities. These new opportunities help makes the daily life easier whether if it is a speeder deliver or a new way to manufacture an item with half the material like the new water bottles.However, when dealing with technology there is always a factor of risk to keep in mind. Youmay not want to constantly update way to fast or update way late compare to the rest of thesociety.

Margaret LeeMonday 1-3MGMT 449

Internal resources and assets Apple have to give a competitive advantage

The competitive advantage Apple has is in their Value Chain. A Value Chain is consist of inbound logistics, operations, distribution, sales and marketing, and service. According to Porter in order to gain competitive advantage, the five areas of the value chain will need to meet. Appleexecutes the value chain perfectly in all five areas.With Apple's success, their financial resources are well funded